# In the matter of Vansh Exports Pvt Ltd CP (IB) No. 619-9-NCLT-AHM-2019

> NCLT judgment dated 2020-10-22. Citation: TCN-2020-NCLT-00347. Mahanand Thakur, the proprietor of Smart Secure Solutions, filed an application under Section 9…

- **Court:** NCLT
- **Order date:** 22 Oct 2020
- **Citation:** TCN-2020-NCLT-00347
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vansh-exports-pvt-ltd-cp-ib-no-619-9-nclt-ahm-2019-154d5ca0

## Summary

### Background

Mahanand Thakur, the proprietor of Smart Secure Solutions, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Vansh Exports Private Limited, the Corporate Debtor, to initiate the Corporate Insolvency Resolution Process (CIRP). The application was based on the Corporate Debtor's alleged default in paying an operational debt of Rs. 22,65,085/- plus interest. The default was stated to have occurred in June 2019.

## Facts

Mr. Mahanand Thakur, proprietor of Smart Secure Solutions, is the Operational Creditor. Vansh Exports Private Limited is the Corporate Debtor. The Operational Creditor filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against the Corporate Debtor. The basis for the application is the Corporate Debtor's default in paying an operational debt of Rs. 22,65,085/- plus interest. The default occurred in June 2019. The Operational Creditor had issued a purchase order to the Corporate Debtor for the supply of goods and paid an advance of Rs. 31.00 lakhs. Rs. 22,65,085/- remained outstanding. The Corporate Debtor issued a cheque for the outstanding amount, but it was dishonored, leading to proceedings under Section 138 of the Negotiable

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The Corporate Debtor failed to pay the outstanding operational debt of Rs. 22,65,085/-

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**Interpretation:** Default, in the context of the IBC, means non-payment of debt when whole or any

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**Application:** The Corporate Debtor's failure to pay the outstanding amount and the dishonor

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Mahanand…
- **Respondents:** Vansh Exports Pvt…
- **Advocates:** Kamil Lokha…

## Timeline

- **2019-06-01 — Date of D…**: The Corporate Debtor defaulted in paying the…
- **2019-06-26 — Notice of…**: The Operational Creditor sent the Corporate Debtor a notice of Demand under Section 8 of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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